I'm starting to put some short selling theory into practice with small amounts of money. My broker has a margin interest rate of 12%. I sold short a total of $381 worth stocks starting on 21OCT2022. The interest charged for the period from 29SEP-27OCT was just over $6. If my calculations are correct that's an annualized rate of 76%. That being $6 for about 1 week. So $24/mo on $381 comes out to about 76% annually.
Clearly I must be missing some key piece of information on short selling or my broker made a mistake, which I doubt since it's likely automated. Does anyone know what I'm missing here?
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